Political commitment to infrastructure encouraging

Political commitment to infrastructure
encouraging but a prioritised committed funded investment
programme is required. The New Zealand Council for
Infrastructure Development has welcomed the range funding
increases announced by Labour and National for investment in
roading, public transport and broadband infrastructure but
recommends that the incoming government develop and commit a
fully funded 20 year national investment programme for
public infrastructure.

"It is pleasing to see the
increasing political commitment to investment for growth.
Not only will this help kick start the New Zealand economy,
it will provide a much needed boost for jobs in the
construction industry and help lock in productivity growth
for the future", says NZCID chief executive Stephen Selwood.

"Given that New Zealand is already lagging behind other
OECD nations in terms of the quality and provision of
essential infrastructure, a further substantial lift in
investment is required.*

"We are concerned that
investments are being announced in an ad hoc basis in the
absence of a prioritised national investment programme
specifically targeted at addressing New Zealand's
overarching infrastructure deficit. "It is critical that a
national investment programme is developed so that projects
that have the greatest positive economic and environmental
gains are prioritised for early investment. This will help
achieve public buy in for essential projects as they will be
seen in the context of an overall plan for New Zealand. "We
also need efficient regulation and consent processes to
prioritise and approve projects in the national interest
that provide the best social, environmental and economic
return. "And the infrastructure sector needs certainty
around a committed and funded pipeline of work to ensure
that the necessary human and capital resources can be
committed in a timely basis.

"For these reasons NZCID
supports policies to develop a national infrastructure plan
and investment programme backed by a regulatory environment
that encourages public and private sector investment and
innovation and which sets a clear direction for
infrastructure development in the context of New Zealand's
overall national development.

This is consistent with
the approach taken with countries like Ireland, Canada and
Australia. "We recommend central government leadership
should be provided by an "infrastructure cabinet" chaired by
a Minister for Infrastructure and comprising ministers with
specific interest in the sector. The infrastructure cabinet
would provide an overarching, whole-of government view of
national priorities and require accountability and best
practice for delivery across the range of government
ministries.

"The cabinet should be supported by an
infrastructure advisory body, Infrastructure NZ, comprising
leaders of the highest calibre from the public and private
sectors. It would provide independent advice to government
about the infrastructure gaps and bottlenecks that hinder
growth. It would identify investment priorities, advance
best practice in procurement and recommend policy and
regulatory reforms necessary to enable timely and
coordinated delivery of national infrastructure.

"A key responsibility would be the development of
a twenty year national infrastructure plan and programme
designed to align national priorities and ensure delivery on
economic goals. Reform of complex regulatory and
environmental approval processes would include further
streamlining of the RMA and other legislation to provide for
national priorities in infrastructure development.
Similarly, Infrastructure New Zealand would provide advice
on appropriate use of debt to fund major projects and
replace the reliance on taxes and local government rates for
funding infrastructure.

"We have a tremendous opportunity
to kick start the New Zealand economy through well planned
investment in infrastructure. What's required is a committed
and funded policy and investment programme supported by
strong government leadership to enable the infrastructure
industry to get on with the job".

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